Auto Leases Make Cents Over the Miles

Aside from a home and a child’s college education, automobiles are generally the biggest purchases families make. While the first two are long-term investments, the value of an automobile will depreciate over time. In some cases, the depreciation is quite significant, which means the investment actually adds up to be an ongoing expense. Auto leasing provides an alternative to contain the expense while putting more money back into a family’s budget over the miles.

Auto leases are not necessarily the right fit for everyone, but the option can prove to be sound for many motorists on the road today. Typical leases allow for 12,000 miles to be put on a vehicle each year without any penalty of an upcharge at the end of the lease. Some companies, such as credit union owned leasing enterprises, build in 15,000 miles. It may also be feasible to negotiate terms for a higher amount when necessary. As long as mileage is contained within the allowable amount and there is a reasonable chance a vehicle can be maintained in good condition without excessive wear and tear, a lease can prove to be a sound financial decision.

While the terms of a lease will vary based on the lender, here are some of the advantages a lease provides versus an outright purchase:

• Lower upfront fees – Depending on the leasing company and personal credit status, a lease may be available with no upfront money due at signing. Other than a payment to cover the first month, there’s no need to save up a lot of cash to go this route.
• Lower monthly payments – Terms will, of course, vary based credit, the car in question and the length of the lease, but payments tend to be a fair amount lower for a lease versus a purchase. The average savings adds up to about $150 a month.
• No "upside down" worries – There’s nothing worse than trying to trade in a vehicle that’s financed for a purchase to find out more is owned than the car is worth. This does not happen with a lease.
• Greater ability to stay in new vehicles – One of the best things about leasing is that drivers have access to new vehicles faster. People who lease on three-year terms, for example, can pick out new models almost before the old one loses its new car smell.

Auto leases enable motorists to contain their costs without compromising on the quality of the vehicle driven. By providing drivers access to better terms on new vehicles, leasing companies open the door on long-term savings versus outright purchases.

a href=http://www.fairlease.org/about-usFairLease is a credit union owned company, FairLease follows a credit union philosophy of serving people, meeting their needs and providing the best product at a reasonable price. In essence, we want "